A bipartisan measure intended to reduce borrowing costs for farmers and ranchers is being co-sponsored by U.S. Rep. Randy Feenstra.

The bill would eliminate taxes on income from farm real estate loans made by community banks. It is called the Enhancing Credit Opportunities in Rural America Act.

”The Enhancing Credit Opportunities in Rural America Act is an important proposal that will help provide lower cost loans to farmers and ranchers,” Feenstra, a Republican from Hull, said in a written statement. ”Our hardworking farmers feed and fuel the world, and I will support any effort that provides the resources they need to succeed in today’s economy.”

The proposal would grant tax exempt status to income earned on agricultural real estate loans administered by banks. Farm credit institutions already get tax exempt status for agricultural real estate loans that they administer.

Feenstra said the proposed change would create competition, drive down interest rates and provide farmers with more affordable loan options.

U.S. Rep. Ron Kind, D-Wisconsin, is the bill’s other co-sponsor.

Feenstra represents Iowa’s 4th Congressional District, which includes Webster County and all of its surrounding counties.